Loan Sharks
What is a loan shark?
Licensed money lenders are regulated by the Office of Fair Trading (OFT) and must follow codes of practice. A loan shark is an unlicensed money lender and operates outside the law. If you borrow from them you will probably;
- get a loan on very bad terms,
- pay an excessive rate of interest,
- be harassed if you fall behind with your repayments,
- be pressured into borrowing more money to pay back another debt.
How do I find out if a lender is licensed?
The Consumer Credit Public Register lists everyone with a OFT licence and everyone who has applied for a licence or had a licence taken away or suspended.
To search the register call 020 7211 8608 between 9.30am to 4pm Monday to Friday. It's free to get basic information.
If a lender is not on the list as having a current licence do not borrow money from them. If you need a loan;
- go to a licensed lender.
- shop around for the best deal, or
- consider borrowing from a Credit Union.
The Money Advice Service offer free independent advice and printed guides to help you manage your money, follow the Web Link below for further information.
If you need help dealing with your debts or money advice call Stockton & District Advice and Information Service on 01642 607445.
What if I have borrowed money from a loan shark?
Unlicensed lending and harassment of debtors are criminal offences which are investigated by Trading Standards. If you have suffered as a result of these practices please let Trading Standards know by calling the Illegal Money Lending Team.
- Call in confidence on 0300 555 2222.
- Text: loan (space) shark (space) followed by your message to 60003.
- Email:reportaloanshark@stoploansharks.gov.uk
A loan shark debt is illegal so you may not have to repay the loan.
Web Links
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